Critical Survey: Lazydays (NASDAQ:GORV) versus Asbury Automotive Group (NYSE:ABG)

Asbury Automotive Group (NYSE:ABG) and Lazydays (NASDAQ:GORV) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Volatility & Risk

Asbury Automotive Group has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Lazydays has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Insider and Institutional Ownership

89.7% of Lazydays shares are held by institutional investors. 0.5% of Asbury Automotive Group shares are held by company insiders. Comparatively, 61.5% of Lazydays shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Asbury Automotive Group and Lazydays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asbury Automotive Group	2.51%	17.93%	6.08%
Lazydays	-18.19%	-35.04%	-6.55%

Valuation and Earnings

This table compares Asbury Automotive Group and Lazydays”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asbury Automotive Group	$15.93 billion	0.28	$602.50 million	$27.44	8.20
Lazydays	$987.99 million	0.02	-$110.27 million	($9.62)	-0.16

Asbury Automotive Group has higher revenue and earnings than Lazydays. Lazydays is trading at a lower price-to-earnings ratio than Asbury Automotive Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Asbury Automotive Group and Lazydays, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asbury Automotive Group	1	3	0	0	1.75
Lazydays	0	2	0	0	2.00

Asbury Automotive Group presently has a consensus target price of $225.25, indicating a potential upside of 0.13%. Lazydays has a consensus target price of $2.00, indicating a potential upside of 31.58%. Given Lazydays’ stronger consensus rating and higher possible upside, analysts plainly believe Lazydays is more favorable than Asbury Automotive Group.

Summary

Asbury Automotive Group beats Lazydays on 8 of the 13 factors compared between the two stocks.

About Asbury Automotive Group

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.

About Lazydays

Lazydays Holdings, Inc. operates recreational vehicle (RV) dealerships under the Lazydays name in the United States. The company offers RV sales, RV-repair and services, financing and insurance products, third-party protection plans, and after-market parts and accessories. It also operates the Lazydays RV resort at Tampa, Florida. The company was founded in 1976 and is based in Tampa, Florida.